Acquisition Equals Opportunities

Whether a big company acquires a small company or a small company merges with a bigger one, in both cases, the employees of the respective company get affected. In most cases, this results in unsatisfied employees, which can be avoided through better icies

Most believe that an acquisition will help only the top management while
people at the lower level wouldn't benefit much from it. But they forget that
the employees of the acquired company would have missed out on larger
opportunities.

When two companies decide to merge, they have a mutual understanding to pool
their resources, and build a joint entity that will serve their single
purpose-to grow and churn larger profit. Merger and acquisition (M&A) has become
a common feature in the Indian IT business in recent times. These days,
companies believe in symbiotic relationships where each one helps the other to
grow.

Manpower issues

Each merging company should have its independent business strategy to
safeguard the interest of different sections of the company. One such segment is
human resource (HR).

Whatever may be the objective of the acquisition, how the employees react to
this change is important. Certain things that should be taken care of during M&A
announcement is retention of staff, integrating them into the new company,
motivating the employees and convincing them to be comfortable with the changed
scenario.

While employers will do their best to make employees comfortable, it is very
important that employees too should understand how the merger would benefit
them. M&A will widen the scope of growth and give multiple options to expand,
for freshers it will be beneficial as they can grab bigger opportunities. This
is something that employers should explain to their entire team.

It is the responsibility of the decision makers of the respective companies
to integrate the two groups of workers effectively and bring them closer on the
ground so that they can understand each other and accept them as a part of the
same company.

It is expected that M&A will bring about a host of uncertainties in the
employees' mind, and they can take unpredictable decisions due to lack of
knowledge and assurance from the employer. It is therefore a challenge for the
owner to retain the team.

Companies entering into mergers and acquisition should learn things from each other so that they can grow mutually

Employees' benefit

Multiple benefits can be enjoyed after their companies are merged. They get
access to a vast database of clients, get to know the best practices of the
other company, come across potential business contacts, and apart from that they
can expand their domain knowledge as well.

They also get a clear picture of how successful companies work, and get the
opportunity to be a part of that environment. Successful companies have
professional working environ­ments and they use the best technology to implement
their strategies.

Every company has all sorts of people in its fold. Some are faster at
adapting themselves to a new environment while some take time to do so. There is
a certain group of people who cannot digest the concept of acquisition and they
decide to quit the company.

Entrepreneurs should identify the nature of their employees and convince them
accordingly. This nurtures feeling of personal attachment with the company and
an employee might change their decision to quit.